From the high costs of health care to the slowed economy, area business people gave voice to some of their biggest concerns at the Smaller Business Association of New England’s (SBANE) town meeting on April 23.
One recurrent theme was the impact of Sept. 11 on the state’s economy.
"Sept. 11 brought fear, uncertainty and doubt to everyone," said Jack Derby, president and chief executive officer of management coaching firm Derby and Associates. "Nine months later, fear, uncertainty and doubt say ‘I’m going to sit on my cash.’ There’s that tendency to hunker down."
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Derby predicted the cautious approach to business would continue through the end of the year.
The event, held at Bryant College, was co-sponsored by the Rhode Island Small Business Development Center at Bryant College, the Rhode Island Manufacturing Extension Service, the Northern Rhode Island Chamber of Commerce, the Greater Providence Chamber of Commerce, the Rhode Island Export Assistance Center, the Center for Design & Business, the Center for Women & Enterprise and Providence Business News.
The town meeting was based on a similar event held at Bentley College in Waltham, Mass. last fall, to provide business owners an opportunity to discuss industry issues and other concerns of a post-Sept. 11 economic climate.
Featured presenters represented a broad range of industries, and in addition to Derby included Tim O’Reilly, president of Newport Harbor Corporation; Tom Schumpert, executive director of the Rhode Island Economic Development Corporation; Merrill Sherman, president and chief executive officer of Bank of Rhode Island; and Cap Willey, managing partner at Rooney, Plotkin & Willey, CPA.
The event was moderated by Steve Kass, talk show host on WPRO-AM.
Also on the minds of members of the audience was the future of the state’s manufacturing industry, so long a mainstay of the Rhode Island economy.
"I think we’ve permanently lost part of our manufacturing arm in this state, and we keep trying to recreate the past," said Sherman, who predicted future significant job growth would not be in manufacturing.
Shumpert acknowledged concerns about competition from overseas, but emphasized that "the ones that are using technology are coming back . . . If they’re not ‘value-added,’ they can’t compete."
O’Reilly seemed to think that the state’s shift away from manufacturing is not necessarily negative.
"I don’t think Rhode Island needs a lot of relatively low-paying manufacturing jobs," he said.
Schumpert identified Immunex and Dow as companies that add to the high skill, high wage base of manufacturers in the state.
"Maybe it’s not unfortunate that the low-skilled, low-paying jobs are leaving," he said. "Value-added manufacturing will continue to do well."
The event was also a magnet for the state’s crop of gubernatorial candidates; Don Carcieri, Tony Pires and Myrth York were among members of the audience of 50 people.
O’Reilly and Willey identified skyrocketing health care costs as a matter of national policy, beyond the possibility of reform at either a company or state level. Willey admitted to being affected himself and said that this year, at his firm, insurance rates for married couples went up 32 percent.
"It’s a national problem," he said.
Some good news for small business, ironically, according to the panel can come in the form of layoffs at larger companies. Derby described the current employment market as "qualified ‘A’ players looking for a little bit of stability."
And there are also opportunities for those interested in expanding a business, even in tighter economic times.
At a financial level, Sherman said "the best thing (businesspeople) can have is a track record."
And Schumpert recommended business owners look to partnerships and alliances with other companies or individuals and taking on investors as alternative means of expansion.
"I’m a big advocate for leveraging where you are by joining forces," he said. "The hardest thing for entrepreneurs to recognize is that they don’t have all of the answers."
